Infosys, one of the tech giants in India, has reportedly evaded the GST tax of a mammoth amount of Rs. 32,403.46 crore for a period of five years.
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The Directorate General office in Bengaluru issued notices to Infosys for its reported invasion of GST. According to a report, Infosys didn’t pay the Integrated Goods and Services Tax (IGST) on services received from its overseas branches from 2017-18 to 2021-22.
Meanwhile, Infosys responded by calling it a “pre-show cause” notice and said it believes GST doesn’t apply to the expenses mentioned.
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In its stock exchange filing, Infosys said that the company is in the process of responding to the letter issued by the Directorate General Office.
Infosys also stated that as per the latest circular (June 26, 2024) issued by the Central Board of Indirect Taxes and Customs on the recommendations of the GST Council, services given by the overseas branch to the Indian company will not apply to the GST.
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The company also noted that GST payments are eligible for credit or refund when exporting IT services. The company asserted that it paid all GST dues in accordance with the laws of the government of India.
Meanwhile, DGGI has yet to respond to Infosys’s stock exchange filing.
